TAX HIKE FAILS TO BRING EXTRA CASH
A COUNCILLOR who voted for a hike in the Local Property Tax, said he expected to see a corresponding increase in the 2018 financial allocation to Wexford District Council as a result.
‘On a 10% increase in the property tax, I did see the General Municipal Allocation (GMA) going up by €50,000. The Chief Executive said he would look at it,’ said a disappointed Cllr. Ger Carthy as he and other councillors were presented with a draft budget plan by the County Council Head of Finance Annette O’ Neill.
The proposed Wexford allocation of €422,500 to pay for services in the district including general road improvements, safety measures, community grants, tourist facilities, litter control, festivals and concerts, hanging baskets and a school meals programme, shows no increase on last year.
Ms. O’Neill said there was no commitment given and the Council was trying to keep it at the 2016 level.
Cllr. Carthy wasn’t satisfied. ‘There was a 10% increase in the property tax. Last year, we got an extra €50,000 on a 5% increase. We were expecting €100,000 on a 10% increase. The money will be there. The tax was increased and there will be 98% compliance so the money will be there.’
Director of Services Tony Larkin said it was agreed that the extra money would be ring-fenced for economic development projects.
Cllr. Frank Staples asked if the draft budget was adopted, could councillors still change aspects of it before the final adoption at the statutory budget meeting.
‘Can we adopt this on the proviso that we get an extra €50,000’, continued Cllr. Carthy.
‘The Chief Executive said he would look at it. He didn’t give a commitment for a 5% increase’, said Ms. O’ Neill.
‘This year, the property tax increased by 10%. That means the municipal allocation should increase to €100,000. There would still be money for economic development’, re-iterated Cllr. Carthy.
‘People who have put their heads on the line in relation to the property tax increase, they should get something out of it’.
The Director of Services responded by pointing out that giving each of the four districts a €50,000 increase would result in €200,000 being taken away from economic development and local improvement schemes.
‘There was no decision made by the Council to that effect,’ he said.
Cllr. George Lawlor said the reason he voted for the increase was primarily to enable the Council to have a greater focus on economic development.
‘If we can get a few bob more for the District, well and good but my primary reason for voting for it was to get more to invest in economic development projects.
It was agreed to adopt the draft budget on the proposal of Cllr. Tony Dempsey and Cllr. George Lawlor but an extra motion was passed, on the proposal of Cllr. Carthy, seconded by Cllr. Lisa McDonald, seeking an extra €50,000 for the district.
The next budgetary meeting of Wexford County Council is due to be held on November 27.